Summary of Consolidated Financial Statements for the Third Quarter Ended December 31, 2018 (IFRS Basis)

Transcription

1 Summary of Consolidated Financial Statements for the Third Quarter Ended December 31, 2018 (IFRS Basis) Date: February 14, 2019 Listed company name: Nitto Denko Corporation Stock exchange listing: First Section of Tokyo Stock Exchange Code Number: 6988 URL Company Representative: Hideo Takasaki, President Contact Person: Takeshi Mitsuhara, General Manager, Brand Strategy Div. Phone: Filing date of quarterly financial statements: February 4, 2019 Estimated starting date of dividend paying: - Preparation of supplementary explanatory materials: Yes Holding of quarterly earnings release conference: Yes (for investment analysts and institutional investors) (All monetary values noted herein are rounded down to the nearest million yen) 1. Consolidated financial results of the third quarter ended December 31, 2018 (April 1, 2018 through December 31, 2018) (1) Operating results ( of change from same period in the previous year) December 31, 2018 December 31, 2017 Revenue Operating Income before taxes Net Net attributable to owners of the parent company Total comprehensive 630, , , , , , , , , , , , Basic earnings per share Diluted earnings per share Yen Yen December 31, December 31, (Note) From the third quarter ended December 31, 2018, "royalty ", which was previously included in "other " on the consolidated statements of, is included in "revenue". Figures for the third quarter ended December 31, 2017, have been restated to reflect this change. (2) Financial position Total assets Total equity Equity attributable to owners of the parent company Ratio of equity attributable to owners of the parent company to total assets December 31, , , , March 31, , , ,

2 2. Dividends Record Date Dividends per share 1Q 2Q 3Q Year-end Annual yen yen yen yen yen March, March, March, 2019 (Forecast) (Note) Revision of dividend forecast in the current quarter: No 3. Forecast for fiscal year ending March 31, 2019 (April 1, 2018 through March 31, 2019) Revenue Operating Income before taxes ( of change from same period in the previous year) Net Net attributable to owners of the parent company Basic earnings per share yen Annual 820, , , , , (Note) Revision of consolidated forecast in the current quarter: Yes - Others (1) Changes in significant subsidiaries during the third quarter ended December 31, 2018: Yes Excluded : 1 company (Company Name) Nitto Denko (Suzhou) Co., Ltd. (2) Changes in accounting policies applied and changes in accounting estimates 1. Changes in accounting policies required by IFRS: Yes 2. Changes in accounting policies other than the above: No 3. Changes in accounting estimates: No (Note) For details, please refer to 2. Quarterly Consolidated Financial Statements and Key Notes (5) Notes on quarterly consolidated financial statements, (Changes in accounting policies) on page 13. (3) Number of shares outstanding (Common stock) 1. Number of shares outstanding at the end of the period (including treasury stock) December 31, 2018: 173,758,428 March 31, 2018: 173,758, Number of treasury stock at the end of the period December 31, 2018: 16,927,475 March 31, 2018: 13,592, Average number of outstanding shares during the period (cumulative from the beginning of the period) April-December 2018: 157,270,428 April-December 2017: 162,387,414 - These quarterly financial results are not subject to quarterly review procedures by Certified Public Accountants or audit firm. - Explanations for adequate utilization of the forecast and other special matters The forward-looking statements shown in this report, including the forecast, are prepared based on information available to the Company and on certain assumptions deemed reasonable as of the issuing date of the report. Consequently, the statements herein do not constitute promises regarding actual results by the Company. Actual results may differ materially from forecasted figures due to various unknown factors. For conditions regarding this forecast and precaution for use, please refer to Explanation of forecasts and other projections on page 6 of the Attachment to this summary of consolidated financial results.

3 (Reference) Consolidated financial results of the third quarter (three months) of the fiscal year ending March 31, 2019 (October 1, 2018 through December 31, 2018) (All monetary values noted herein are rounded down to the nearest million yen) ( of change from same period in the previous year) Net Total Income before attributable to Revenue Operating Net comprehensive taxes owners of the parent company Third quarter ended Dec. 31, 2018 Third quarter ended Dec. 31, , , , , , , , , , , , , Basic earnings per share Diluted earnings per share Yen Yen Dec. 31, Dec. 31, (Note) From the third quarter ended December 31, 2018, "royalty ", which was previously included in "other " on the consolidated statements of, is included in "revenue". Figures for the third quarter ended December 31, 2017, have been restated to reflect this change.

4 (Attached Documents) Index 1. Qualitative Information Regarding Quarterly Settlement of Accounts... 2 (1) Explanation of operating results... 2 (2) Explanation of financial position... 6 (3) Explanation of forecasts and other projections Quarterly Consolidated Financial Statements and Key Notes... 7 (1) Quarterly consolidated statements of financial position... 7 (2) Quarterly consolidated statements of and quarterly consolidated statements of comprehensive... 9 (3) Quarterly consolidated statements of changes in equity (4) Quarterly consolidated statements of cash flows (5) Notes on quarterly consolidated financial statements (Notes on going concern assumption) (Changes in significant subsidiaries during the third quarter ended December 31, 2018) (Changes in accounting policies) (Segment information) (Notes in cases where there was a substantial change in the amount of shareholders equity) (Significant subsequent events)

5 1. Qualitative Information Regarding Quarterly Settlement of Accounts (1) Explanation of operating results During the first nine months of the fiscal year ending March 31, 2019 (April 1, 2018 through December 31, 2018), economic environment maintained modest trend toward recovery in Japan and overseas. Trade policy of the U.S. and that of China provoked worldwide concerns over economic deceleration. Falling crude oil prices, and the U.S. monetary policy against financial markets resulted in the appreciation of the yen. In such economic environment, Nitto Group (the "Group") expanded steadily in Functional Base Products and Transportation in Industrial Tape. For Optronics, the Group also expanded steadily in Flexible Printed Circuits, however Information Fine Materials and Processing Materials weakened. For Life Science, the operating result in the first nine months of the fiscal year ending March 31, 2019 was improved since the Group recorded the final profit in the first quarter regarding the change in our customer s situation on new drug development in the previous fiscal year. As a result of the above, revenue decreased by 4.6 from the same period of the previous year (changes hereafter are given in comparison with the same period of the previous year) to 630,172 million yen. Operating decreased by 23.0 to 84,123 million yen, before taxes decreased by 24.2 to 83,105 million yen, net decreased by 24.5 to 60,745 million yen, and net attributable to owners of the parent company decreased by 24.5 to 60,683 million yen. Summary of results by segment 1 Industrial Tape While sales of Functional Base Product for smartphones had a bearish tendency, sales of processing materials for semiconductor and electronic components were in good shape. Filter materials and heat-resistant materials for industrial use also fared well. In our transportation business, sales of electrical insulating materials and vent filters related to car electronics applications remained favorable. As a result of the above, revenue increased by 0.8 to 258,340 million yen and operating decreased by 14.6 to 23,309 million yen. 2 Optronics With regard to optical films for smartphones, of which demand used to peak from October to December every year, its demand did not reach the level we had forecasted this fiscal year, and thus resulted in sluggish sales of Information Fine Materials. Flexible Printed Circuits grew steadily, driven by the sales of that for high-capacity hard disk drive (HDD) models for data centers. Processing Materials remained sluggish as demand for manufacturing use of semiconductor entered a phase of adjustment. As a result of the above, revenue decreased by 9.0 to 355,737 million yen and operating decreased by 27.5 to 61,530 million yen. 3 Life Sciences Efficacy for atrial fibrillation has been added to transdermal patches for essential hypertension, which were co-developed with our customer. As for nucleic acid drug development, the investigational new drug (IND) application, a ribonucleic acid interference (RNAi)-based treatment for KRAS mutant tumors was allowed to proceed by the US Food and Drug Administration (FDA). The Group is working to initiate the Phase 1 study. In oligonucleotide contract manufacturing business, the final profit of contract manufacturing due to the change during the previous fiscal year in our customer s situation on new drug development was recorded in the first quarter. As a result of the above, revenue increased by 12.3 to 23,376 million yen and operating increased by to 2,595 million yen. 4 Others Responding to the industrial demands for water treatment plants, including seawater desalination, sales of Membrane were firm. Please note that this segment includes new businesses that have yet to generate sufficient levels of revenue. As a result of the above, revenue increased by 0.4 to 19,255 million yen and operating loss amounted to 1,356 million yen. (operating of 141 million yen was reported in the same period of the previous year) - 2 -

6 With the changes in the management structure that have been made during the fiscal year 2018 under review, partial changes have been made to reporting segments. From the third quarter ended December 31, 2018, "royalty ", which was previously included in "other " on the consolidated statements of, is included in "revenue". We conduct a comparison with the figures of the first nine months of the previous consolidated fiscal year after this change is reflected to reclassification. (Reference) Segment Information (nine months) December 31, 2017 (April 1, 2017 through December 31, 2017) (Yen in ) December 31, 2018 (April 1, 2018 through December 31, 2018) Revenue Revenue Y-o-Y () Functional Base Products 132, , Industrial Tape Transportation 124, , Total 256, , Operating 27,284 23, Information Fine Materials 340, , Flexible Printed Circuits 31,788 32, Optronics Processing Materials 18,399 17, Total 390, , Operating 84,831 61, Life Science Revenue 20,815 23, Operating 626 2, Others Revenue 19,171 19, Operating 141-1,356 - Corporate/Elimination Revenue -26,552-26,537 - Operating -3,620-1,954 - Total Revenue 660, , Operating 109,263 84, (Note) With the changes in the management structure that have been made during the fiscal year 2018 under review, partial changes have been made to reporting segments. From the third quarter ended December 31, 2018, "royalty ", which was previously included in "other " on the consolidated statements of, is included in "revenue". Such changes have also been reflected in the figures for the third quarter ended December 31,

7 (Reference) Segment Information (three months) December 31, 2017 (October 1, 2017 through December 31, 2017) (Yen in ) December 31, 2018 (October 1, 2018 through December 31, 2018) Revenue Revenue Y-o-Y () Functional Base Products 46,511 46, Industrial Tape Transportation 43,513 42, Total 90,025 88, Operating 10,008 8, Information Fine Materials 123, , Flexible Printed Circuits 11,028 10, Optronics Processing Materials 6,290 5, Total 140, , Operating 34,655 29, Life Science Revenue 5,445 6, Operating -1, Others Revenue 6,345 6, Operating Corporate/Elimination Revenue -9,260-9,473 - Operating -2,511-4,634 - Total Revenue 233, , Operating 41,020 32, (Note) With the changes in the management structure that have been made during the fiscal year 2018 under review, partial changes have been made to reporting segments. From the third quarter ended December 31, 2018, "royalty ", which was previously included in "other " on the consolidated statements of, is included in "revenue". Such changes have also been reflected in the figures for the third quarter ended December 31,

8 (Reference) Segment Information (annual forecast) (Yen in ) Forecasts of fiscal year ending March 31, 2019 (As of January 31, 2019) Revenue Y-o-Y () Industrial Tape Optronics Life Science Others Corporate/Elimination Total Functional Base Products 181, Transportation 162, Total 343, Operating 31, Information Fine Materials 392, Flexible Printed Circuits 39, Processing Materials 23, Total 455, Operating 70, Revenue 30, Operating 2, Revenue 27, Operating -1,000 - Revenue -35,000 - Operating -2,000 - Revenue 820, Operating 100,

9 (2) Explanation of financial position The Group s financial position at the end of the third quarter of the fiscal year ending March 31, 2019 was as follows. Compared with the end of the fiscal year ended March 31, 2018, total assets decreased by 16,031 million yen to 921,764 million yen and total liabilities decreased by 19,052 million yen to 224,748 million yen. Total equity increased by 3,020 million yen to 697,016 million yen. As a result, the ratio of equity attributable to owners of the parent company to total assets changed from 73.9 at the end of the fiscal year ended March 31, 2018 to 75.5 at the end of the third quarter of the fiscal year ending March 31, The main changes in assets were a decrease in cash and cash equivalents of 28,806 million yen,an increase in trade and other receivables of 7,990 million yen, an increase in inventories of 3,753 million yen, a decrease in other financial assets of 7,495 million yen, a decrease in assets held for sale of 5,914 million yen, an increase in property, plant and equipment of 11,843 million yen, an increase in deferred tax assets 3,422 million yen. In terms of liabilities, trade and other payables increased by 4,674 million yen, tax payables decreased by 13,686 million yen, other current financial liabilities increased by 3,154 million yen, other current liabilities decreased by 7,456 million yen, other non-current liabilities decreased by 6,158 million yen. (3) Explanation of forecasts and other projections Given the financial results of the period under review, the full-year forecasts of the year ending March 31, 2019 were modified with a review of market trends in the future. Revision of consolidated forecasts for the fiscal year ending March 31, 2019 (April 1, 2018 through March 31, 2019) Revenue Operating Income before taxes Net Net attributable to owners of the parent company Basic earnings per share Yen Previous forecast (A) 830, , ,000 84,000 84, Revised forecast (B) 820, ,000 99,000 73,000 73, Difference (B) (A) -10,000-15,000-15,000-11,000-11,000 - Rate of change () (Reference) Consolidated financial results for the fiscal year ended March 31, , , ,168 87,463 87, The above results and forecasts are forward-looking statements determined by the Company based on currently available information that may include risks and uncertainties. Please be aware that actual results may vary significantly due to various factors

10 2. Quarterly Consolidated Financial Statements and Key Notes (1) Quarterly consolidated statements of financial position (Yen in ) March 31, 2018 December 31, 2018 (Assets) Current assets Cash and cash equivalents 304, ,903 Trade and other receivables 192, ,111 Inventories 95,068 98,822 Other financial assets 8,815 1,320 Other current assets 15,398 15,478 Subtotal 616, ,635 Assets held for sale 5,914 - Total current assets 622, ,635 Non-current assets Property, plant and equipment 248, ,261 Goodwill 6,927 6,892 Intangible assets 12,355 12,203 Investments accounted for using equity method Financial assets 9,361 8,198 Deferred tax assets 28,295 31,717 Other non-current assets 10,073 10,483 Total non-current assets 315, ,129 Total assets 937, ,

11 (Yen in ) March 31, 2018 December 31, 2018 Liabilities and equity (Liabilities) Current liabilities Trade and other payables 110, ,789 Bonds and borrowings 4,049 3,262 Income tax payables 19,270 5,583 Other financial liabilities 13,362 16,516 Other current liabilities 40,379 32,922 Subtotal 187, ,074 Liabilities directly associated with assets classified as held for sale Total current liabilities 187, ,074 Non-current liabilities Other financial liabilities 1, Defined benefit liabilities 46,227 48,100 Deferred tax liabilities Other non-current liabilities 8,339 2,181 Total non-current liabilities 56,364 51,674 Total liabilities 243, ,748 (Equity) Equity attributable to owners of the parent company Share capital 26,783 26,783 Capital surplus 55,981 56,086 Retained earnings 665, ,771 Treasury stock -69,867-98,270 Other components of equity 14,819 11,891 Total equity attributable to owners of the parent company 693, ,262 Non-controlling interests Total equity 693, ,016 Total liabilities and equity 937, ,

12 (2) Quarterly consolidated statements of and quarterly consolidated statements of comprehensive (Quarterly consolidated statements of ) (Yen in ) December 31, 2017 (April 1, 2017 through December 31, 2017) December 31, 2018 (April 1, 2018 through December 31, 2018) Revenue 660, ,172 Cost of sales 436, ,297 Gross profit 224, ,874 Selling, general and administrative expenses 89,298 93,648 Research and development expenses 23,791 23,354 Other 3,394 7,637 Other expenses 5,221 3,385 Operating 109,263 84,123 Financial Financial expenses 634 1,873 Equity in profits (losses) of affiliates Income before taxes 109,579 83,105 Income tax expenses 29,156 22,359 Net 80,423 60,745 Net attributable to: Owners of the parent company 80,356 60,683 Non-controlling interests Total 80,423 60,745 Earnings per share attributable to owners of the parent company Basic earnings per share (yen) Diluted earnings per share (yen)

13 (Quarterly consolidated statements of comprehensive ) (Yen in ) December 31, 2017 (April 1, 2017 through December 31, 2017) December 31, 2018 (April 1, 2018 through December 31, 2018) Net 80,423 60,745 Other comprehensive Items that will not be reclassified to profit or loss Net gain (loss) on financial assets measured at fair value through other comprehensive Reevaluation of defined benefit liability - 23 Items that will be reclassified to profit or loss Exchange differences on translating foreign operations 11,700-2,026 Net gain (loss) in fair value of cash flow hedges Share of other comprehensive of associates accounted for using equity method 4-1 Total other comprehensive 12,564-2,808 Total comprehensive 92,987 57,937 Total comprehensive attributable to: Owners of the parent company 92,919 57,876 Non-controlling interests Total 92,987 57,

14 (3) Quarterly consolidated statements of changes in equity For the third quarter ended December 31, 2017 (April 1, 2017 through December 31, 2017) (Yen in ) Equity attributable to owners of the parent company Share capital Capital surplus Retained earnings Treasury stock Other components of equity Total Noncontrolling interests Total equity Balance as of April 1, ,783 56, ,886-50,876 17, , ,421 Net , , ,423 Other comprehensive Total comprehensive Share-based payment transactions ,562 12, , ,356-12,562 92, , Dividends , , ,185 Changes in treasury stock Transfers from other components of equity to retained earnings Total transactions with owners Balance as of December 31, , , ,033 26,783 55, ,076-50,512 30, , ,375 For the third quarter ended December 31, 2018 (April 1, 2018 through December 31, 2018) (Yen in ) Equity attributable to owners of the parent company Share capital Capital surplus Retained earnings Treasury stock Other components of equity Total Noncontrolling interests Total equity Balance as of April 1, 2018 Cumulative effects of changes in accounting policies 26,783 55, ,561-69,867 14, , , Adjusted balance 26,783 55, ,992-69,867 14, , ,426 Net , , ,745 Other comprehensive Total comprehensive Share-based payment transactions ,806-2, , , ,806 57, , Dividends , , ,951 Changes in treasury stock Transfers from other components of equity to retained earnings Total transactions with owners Balance as of December 31, , , , ,904-28, , ,347 26,783 56, ,771-98,270 11, , ,

15 (4) Quarterly consolidated statements of cash flows Cash flows from operating activities December 31, 2017 (April 1, 2017 through December 31, 2017) (Yen in ) December 31, 2018 (April 1, 2018 through December 31, 2018) Income before taxes 109,579 83,105 Depreciation and amortization 37,048 34,644 Increase (decrease) in defined benefit liabilities 2,273 1,920 Decrease (increase) in trade and other receivables -45,166-8,164 Decrease (increase) in inventories -9,929-4,692 Increase (decrease) in trade and other payables 10,420 3,675 Interest and dividend Interest expenses paid Income taxes (paid) refunded -29,622-39,576 Others 3,687-10,681 Net cash provided by (used in) operating activities 78,787 60,874 Cash flows from investing activities Purchase of property, plant and equipment and intangible assets Proceeds from sale of property, plant and equipment and intangible assets -35,744-45, Decrease (increase) in time deposits -3,223 6,350 Proceeds from sale of shares of subsidiaries resulting in change in scope of consolidation - 2,634 Others Net cash provided by (used in) investing activities -38,847-36,435 Cash flows from financing activities Net increase (decrease) in short-term loans payable Decrease (increase) in treasury stock -0-28,547 Cash dividends paid -25,166-26,928 Others Net cash provided by (used in) financing activities -24,194-55,627 Effect of exchange rate changes on cash and cash equivalents Reclassification of cash and cash equivalents included in assets held for sale in the opening balance 4, ,780 Net increase (decrease) in cash and cash equivalents 20,206-28,806 Cash and cash equivalents at the beginning of the period 280, ,709 Cash and cash equivalents at the end of the period 300, ,

16 (5) Notes on quarterly consolidated financial statements (Notes on going concern assumption) Not applicable. (Changes in significant subsidiaries during the third quarter ended December 31, 2018) During the third quarter of the fiscal year ending March 31, 2019, the Company's consolidated subsidiary Nitto Denko (Suzhou) Co., Ltd. was excluded from scope of consolidation due to transferring of all shares. (Changes in accounting policies) The significant accounting policies adopted for the Group's condensed interim consolidated financial statements are the same as those for the consolidated financial statements for the fiscal year ended March 31, 2018, with the exception of the items described below. Beginning from the fiscal year ending March 31, 2019, the Group has adopted IFRS 15 Revenue from Contracts with Customers. When applying IFRS 15, as a transition measure the Group applies this standard retrospectively with the cumulative effects of initially applying this standard recognized at the date of initial application. In accordance with the adoption of IFRS 15, revenue is recognized based on the following five-step model. Step 1: Identify the contract with a customer Step 2: Identify the performance obligations in the contract Step 3: Determine the transaction price Step 4: Allocate the transaction price to the performance obligations in the contract Step 5: Recognize revenue when the entity satisfies a performance obligation Main business lines of the Group are Industrial Tape, Optronics and Life Science, and in the business lines the Group sells a range of products and licenses its patents, technologies and etc. Because customers obtain control over the products at the time of delivery, for sales of these products the performance obligation is judged to have been satisfied and revenue is therefore recognized upon delivery of the products. For manufacture and sales associated with part of medical products in Life Science, revenue is recognized according to the progress toward completion of the performance obligation. As for the license business, the performance obligation is judged to have been satisfied and revenue is therefore recognized upon provision or completion of the service to a customer based on the substantial content of the contract. Furthermore, revenue is measured at the consideration promised in contracts with customers, less discounts, rebates, returned products, and other items. The effect of the application of IFRS 15 on the Group s condensed interim consolidated financial statements is immaterial. With the exception of the standards described above, the following is the accounting standard applied by the Group from fiscal year ending March 31, 2019, in compliance with its transitional provision. The effect of the application of the following standard on the Group s condensed interim consolidated financial statements is immaterial. IFRS Title Summaries of new IFRS and amendments IFRS 9 (Amended in 2014) Financial Instruments Amendments of financial instrument classification and measurement, impairment and hedge accounting

17 (Segment information) Information regarding revenue,, or loss by segments December 31, 2017 (April 1, 2017 through December 31, 2017) (Yen in ) Industrial Tape Optronics Life Science Others Total Adjustment Quarterly consolidated statements of Revenue from outside customers 246, ,963 16,841 16, , ,736 Inter-segment revenue 9,982 10,929 3,974 2,494 27,381-27,381 - Total segment revenue 256, ,892 20,815 19, ,289-26, ,736 Total operating (loss) 27,284 84, ,883-3, ,263 Financial 929 Financial expenses -634 Equity in profits (losses) of affiliates 21 Income before taxes 109,579 (Note) With the changes in the management structure that have been made during the fiscal year 2018 under review, partial changes have been made to reporting segments. From the third quarter ended December 31, 2018, "royalty ", which was previously included in "other " on the consolidated statements of, is included in "revenue". Such changes have also been reflected in the figures for the third quarter ended December 31, Major products for each segment Business segment Industrial Tape Optronics Life Science Others Major products Functional Base Products (bonding and joining products, protective materials, etc.), Automotive Products Information Fine Materials, Flexible Printed Circuits, Processing Materials Medical Products Membrane Products, Other Products

18 December 31, 2018 (April 1, 2018 through December 31, 2018) (Yen in ) Industrial Tape Optronics Life Science Others Total Adjustment Quarterly consolidated statements of Revenue from outside customers 246, ,520 19,747 17, , ,172 Inter-segment revenue 11,890 10,217 3,629 1,644 27,381-27,381 - Total segment revenue 258, ,737 23,376 19, ,710-26, ,172 Total operating (loss) 23,309 61,530 2,595-1,356 86,078-1,954 84,123 Financial 820 Financial expenses -1,873 Equity in profits (losses) of affiliates 34 Income before taxes 83,105 (Adoption of IFRS 15 Revenue from Contracts with Customers ) The Group applied IFRS 15 Revenue from Contracts with Customers starting from the first quarter ended June 30, 2018 as stated in the Changes in accounting policies. In accordance with the transitional measures under IFRS 15, the cumulative effects are recognized as an adjustment to the opening balance of retained earnings for the first quarter ended June 30, Therefore, the Group does not restate the third quarter ended December 31, 2017 financial statements. Major products for each segment Business segment Industrial Tape Optronics Life Science Others Major products Functional Base Products (bonding and joining products, protective materials, etc.), Automotive Products Information Fine Materials, Flexible Printed Circuits, Processing Materials Medical Products Membrane Products, Other Products (Notes in cases where there was a substantial change in the amount of shareholders equity) Pursuant to the resolution at the Board of Directors meeting of January 31, 2018, the Company has acquired its treasury shares of 28,546 million yen. Pursuant to the resolution at the Board of Directors meeting of June 22, 2018, the Company has also disposed of its treasury shares of 141 million yen as remuneration for restricted shares, making the number of treasury shares at the third quarter of the fiscal year ending March 31, ,927 thousand, or the book balance of 98,270 million yen. (Significant subsequent events) Not applicable